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Student accommodation providers instability at the National Student Financial Aid Scheme (NSFAS) are pushing many landlords to the breaking point, with some struggling to keep the lights on as delayed payments and unresolved rental rates continue to pile pressure on the sector.
The South African National Student Accommodation Association has raised alarm over the decision by higher education minister Buti Manamela to place NSFAS under administration once again.
In a statement, the association said that while it noted assurances that student funding and allowances would continue uninterrupted, the latest leadership change deepened concerns about ongoing instability at the entity.
NSFAS has now been placed under administration for the third time since 2018. The repeated changes in leadership have left accommodation providers frustrated and financially strained.
“For landlords and accommodation providers, this instability is not theoretical,” the association said. “Each new board, administrator, or executive leadership structure arrives with promises of reform, stability, and improved payments.
“Yet accommodation providers continue to face delayed payments, unresolved reconciliation issues, absent remittance advice, and uncertainty around rental rates.”
The reality is that many landlords are reaching a point where they may no longer be financially capable of sustaining operations under the current conditions
— South African National Student Accommodation Association
The association said the financial pressure was now spilling over into the daily lives of students. It said a growing number of student accommodation providers in Tshwane and other parts of the country were facing electricity disconnections because of unpaid municipal accounts.
“These disconnections are not merely administrative matters; they are a direct reflection of the worsening financial strain facing the sector.”
According to the association, landlords are being expected to continue housing NSFAS-funded students while dealing with:
- rising electricity and water costs;
- higher municipal tariffs;
- maintenance expenses;
- security costs; and
- interest rate pressures.
At the same time, the 2026 NSFAS rental rates remain unresolved, and payments are still delayed.
“The reality is that many landlords are reaching a point where they may no longer be financially capable of sustaining operations under the current conditions,” said the association.
“No accommodation provider should be expected to operate indefinitely without payment certainty while municipalities intensify debt recovery measures against property owners.”
The association called on newly appointed administrator Prof Hlengani Mathebula and the minister to urgently address outstanding landlord payments, finalise the 2026 private accommodation rental rates and improve reconciliation systems.
It also renewed calls for the creation of an independent student accommodation authority to manage accreditation, compliance and payment systems outside NSFAS.
“Students deserve certainty. Landlords deserve payment. The sector deserves leadership that lasts beyond crisis management.”
TimesLIVE
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